2019 could be characterised as the year of the S-REIT. A combination of low interest rates and record high S-REIT valuations drove a flurry of REIT mergers and acquisitions. It also led to 4 REITs deciding to list themselves in the past year on the SGX.

As such, it is no surprise we begin 2020 where 2019 left off with yet another REIT IPO. The latest challenger is Elite Commercial REIT (ECR) with an offering of mostly freehold offices in the UK.

Suffering from REIT IPO fatigue yet? If not, let’s take a look at this offering together.

IPO Overview

Here is a brief overview of the offering details based on the term sheet seen by the Business Times:

  • The IPO Price will likely be £0.68
  • There will be 175.7m – 192.9m units on offer in total. 92.9m – 109.3m units is reserved for the placement tranche and 77.8m units going to cornerstone investors. This leaves only 5 – 5.8m units for the public tranche, which is very small.